Nintendo cuts 3DS price amid losses

Nintendo stayed deep in the red in the latest quarter, forcing the Japanese video game giant to cut its full-year forecasts and slash prices on its new 3DS handheld device.

The company posted a net loss of £198 million in the April-June period.

The Kyoto-based company blamed its lacklustre sales on a dearth of hit titles for the Wii and 3DS, as well as a strong yen.

To fuel momentum, Nintendo decided it needed to dramatically drop prices just five months after it launched the 3-D version of its DS handheld device to high hopes. The move underscores how quickly the company's fortunes have turned since the Wii revolutionized the industry and flew off store shelves.

The 3DS will cost around £120 in Japan from August 11, down from just under £200. In the US, the price will drop by nearly £50 the following day. Nintendo does not set suggested retail prices for Europe but said it would lower wholesale prices by about a third.

"For anyone who was on the fence about buying a Nintendo 3DS, this is a huge motivation to buy now," Nintendo of America president Reggie Fils-Aime said in a statement.

The 3DS got off to a solid start when it launched but has since lost momentum. Analysts cite a lack of compelling content for the device and say consumers may now be waiting for Sony's upcoming release of the new PlayStation Vita handheld, which will sell for £183 in the US.

Such a big price cut so soon after a product's launch is unprecedented for Nintendo, and it's likely to annoy the loyal fans who have already bought the device, said Eiji Maeda, an analyst at SMBC Nikko Securities in Tokyo.

It took almost three years for the company to lower the price on the Wii for the first time, and that was by around £30.

"This shows that Nintendo feels it really needs to lift up the 3DS," Maeda said.